Effect of Advertisements on Purchase Decision of fmcg products

GROUP 4: Scintillating Researchers. Payal Mohanty(IB108125) Pragya Vaid(IB108126) Seema(IB108128) Akanksha Deep(IB108129) KrirtikA Nagdev(IB108130) Pragati Gupta(IB108133) Nimish(IB108134) Ekta Narayan(IB108140) Priyanka Agarawal(IB108328)

RESEARCH PROPOSAL
Title: Effect of Advertisement on Purchase Decision of FMCG Products Team: Scintillating Researchers. Executive Summary:
As being incorporated or associated with the marketing process, advertising finds its position in every organization. Advertising can be defined as another strategy as an approach towards competitive advantage. Various advertising concepts are in the stream of the media and papers but still there is a little evidence that advertising can significantly help the organization boosts its performance. In terms of sales, it is true that the application of the marketing and its associate strategies can gain the consumers trust and loyalty, and in return, can enjoy the benefits of the market share.

Background of the Study

Many businesses explore various options in order to achieve the success. From the traditional research and development, to the training of the people, and the intervention of the various technologies, there is no doubt that organizations are trying make a difference against the other. Obviously, the organizations actions towards the threats and challenges in globalization enable the propellers and the people to work to meet their corporate objectives and long-term goal. However, the simple marketing concept is viewed by the business analysts as an effective strategy if the organization is planning to gather and/or keep the loyalty of the consumer. The use of the advertising within an organization is interestingly growing and various researches value its importance as an important factor that can influence the purchase decision. It is generally been noticed that there are certain factors which stimulate people for purchasing products of particularly FMCG Sector. A consumers purchasing decision is influenced by cultural, social, and personal factors. It is thought that if reallocation is done towards advertisement, a sales improvement can be enjoyed. As advertising affects both internal and external behavior of the consumer. Most especially, the consumers perceptions are influence through the exposure such as seeing an advertisement; attention which means that the consumer recognizes the advertisement; awareness which is common if the advertisement involves some humour; and the retention that keeps or stays in the mind of the consumer.

Objective/ Aim:
To understand the role of advertising as part of the marketing. To determine the level of influence that the advertisements can create to manipulate or influence the purchase decision. To set other functions of advertisement aside from meeting the trust and loyalty of the consumers.

Research Approach:
While researchers have examined varying formats for presenting credibility information, they have not compared the relative impact of presenting the same information in advertisements tailored to personality profiles. The current study was designed to determine, if consumers are more responsive to advertising claims when the source is identified as credible, i.e. competent, believable or has some good will component in product advertisements tailored to a specific personality profile. For clarity, it attempts to evaluate if advertising affects the purchasing motive, loyalty and preferences of consumers. To begin with the research study,the following points are addressed Data Collection Method- Data is to be collected from 200 respondents through primary research by field experiment (using Questionnaire method). Analytical Techniques- Data collected will be then analysed using various measures of central tendency and further taking the primary method of analysis
that will be used for this study, however, will be focused on the information gathered from the respondents. Careful assessment must be done on the literatures themselves and notes were taken that helped in finding information that related primarily to the consumer behaviour and how advertisement affects the choices that the customers make. Also, we will include following for the better result to the study:

1. Cross Tabulation 2. Correlation Analysis 3. Annova 4. Factor Analysis 5. Logit Techniques

In this case, the study prepared several questions that can help the study meet its own objectives. 1. What are the criteria on the basis of which customers makes purchasing decision? 2. How does customers evaluate the product according to the criteria?
3.

What are the recognized faces of advertising to the consumers?

Time and Cost Requirements

For the effective research study, it

is imperative to take into account the time period needed and the costs required to be incurred for the study. So, the length of study, thus calculated would be, 10 days- base period 5 days- test period

References:

Park, D., 1996. Advertising and the Meaning of Competition [Online] Available at: http://www3.ntu.edu.sg/nbs/sabre/working_papers/24-96.pdf[Accessed 17 March 2010] Chen, W., & Lee, C., 2005. The Impact of Web Site Image and Consumer Personality on Consumer Behavior, International Journal of Management, Vol. 22, No. 3. Tsai, M., Liang, W., & Liu, M., 2007. The Effects of Subliminal Advertising on Consumer Attitudes and Buying Intentions, International Journal of Management, Vol. 24, No. 1 Marketing Research by Tull and Hawkins (6th edition)